On September 11 (UTC+8), despite the U.S. core CPI rising 0.3% month-over-month in August, the Fed's preferred inflation gauge, the "core PCE inflation index," may have risen less than 0.2% last month. This is the conclusion analysts reached after studying the CPI and PPI data released this week. If they are correct, the year-over-year core PCE inflation rate in August may stabilize at 2.9%, which may lead the Fed to take a more optimistic view of price pressures at its September meeting. "In short, core PCE inflation will remain on track and will be no worse than the Fed's June forecast of rising to just over 3% by the end of the year," wrote Capital Economics analyst Stephen Brown. (Source: 金十) [MetaEra]